Mill disruption underpins 'disappointing' Q1 results for Central Rand Gold

Central Rand Gold, the gold exploration and production company operating on the southern outskirts of Johannesburg, has unveiled 'disappointing' first quarter results reflecting the challenges of erratic milling availability surrounding its Bateman Mill.

Central Rand Gold, the gold exploration and production company operating on the southern outskirts of Johannesburg, has unveiled 'disappointing' first quarter results reflecting the challenges of erratic milling availability surrounding its Bateman Mill.

In a financial update issued on Monday, the company reported that 36,483 dry tonnes were processed in the first quarter of 2013 compared to 44,081 dry tonnes processed in the fourth quarter of 2012.

It said that the challenges of erratic milling availability surrounding the Bateman Mill had continued throughout January and February, with several gearbox replacements being required as well as major modifications to the mill drive train.

The company said that the modifications appeared to bear fruit in March, with production stabilising at 15,645 dry tonnes, arising from a solid 85% plant availability. However in April, a further two weeks were lost on the Bateman Mill due to further gearbox failures.

The Bateman Mill was brought back online on April 13th, with larger improved gearboxes and a strengthened drive train.

The company is currently in talks with an external toll processing company with a view to exploring the possibility of toll treating the majority of the company' mine production at commercial rates more closely aligned to the existing internal cost of production.

"The option to outsource gold production provides operating cot protection; access to additional metallurgical production capacity as well as ensuring a more stable production profile," the company stated.

Central Rand Gold's share price was down 11.49% to 0.38p at 11:32 on Monday.

MF

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